Finer Purposes for the best Tax Planning Process

This guide’s purpose is to develop basic recommendations on tax planning. Naturally, this manual reflects the main provisions of tax planning and is suitable for most taxpayers. However, it does not include more complex aspects of tax planning, considering customers’ unique needs and requirements.

Our company is ready to help you individually with practical advice on using tax benefits and reducing the amount of taxes paid on legal grounds.

Basic tips on tax savings:

1. Contribute to pension and advanced training funds to the maximum extent permitted by law and use tax concessions related to savings funds and cash benefits (pensions). Contributing up to the maximum amount allowed by law, particularly to the fund for advanced training, is one of the simplest and most effective ways of saving significant amounts of money, suitable for most taxpayers.
2. Ensure that all eligible expenses associated with business activities are taken into account. This is not about tax planning itself but about a more thorough check on how all the cost accounting features were used. In our experience, many taxpayers are unaware that many of the expenses they incur in their business can be recorded for tax purposes. For example, many taxpayers working at home do not know that it is possible to demand recognition of business expenses proportional to the costs of the occupied premises in certain situations. Many taxpayers do not understand that gifts and bonuses provided to customers and suppliers are also considered expenses (given the maximum allowable amount).
3. Check whether you use all the preferential tax units you are entitled to. For example, did you use benefits for small children’s parents, for holders of scientific degrees, etc?
4. Compensate for losses. If you have losses from business activities and from the sale of securities, ensure that the annual report is prepared to consider these losses to prevent excessive tax payments.
5. Study the structure and features of your activity. Sometimes, re-registering private entrepreneurs in a limited liability company can reduce their current tax payments. Read about this in our guide, “Self-employed or limited company.” From the tax planning Calgary, this is the best deal.

Tax planning is the process of balancing tax deductions to budgetary state structures. This type of planning is based on analyzing the enterprise’s documentation and assessing the current economic situation, reflecting the enterprise’s position in the industry. On our site, you can find a lot of practical advice on tax planning.

Tax planning tasks include distributing and optimizing tax deductions so that the current manipulations positively impact the enterprise’s profit level. Therefore, the company’s internal organizational policy concentrates its efforts on the possibility of reducing mandatory payments by applying for concessions and benefits or by searching for and applying measures aimed at preserving the current amount of tax deductions with a planned increase in income.